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Powering a better world: Rolls-Royce and the environment Tony Davis CEO Rolls-Royce Australasia RAeS New Zealand Division Sustainable Aviation Seminar, Wellington 28 March 2008

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Powering a better world:Rolls-Royce and the environment

Tony Davis CEO Rolls-Royce Australasia

RAeS New Zealand DivisionSustainable Aviation Seminar, Wellington28 March 2008

Rolls-Royce proprietary information2

Rolls-Royce plc

DefenceAerospace

CivilAerospace

Marine Energy

Rolls-Royce proprietary information3

Rolls-Royce Civil Aerospace

Australasia and the Pacific Islands

Rolls-Royce proprietary information4

Rolls-Royce Environmental Strategy

Committed strategy with three related elements: maintain drive to reduce environmental impact further reduce environmental impact of products develop new low emission & renewable energy

products

Annual public domain reports: www.Rolls-Royce/community/environment

Investment in reducing environmental impact About NZD $1.8 Billion per annum

Global research network

Working together for the whole industry

Rolls-Royce proprietary information5

Rolls-Royce Technology ‘Vision’

Vision20 – Future generation Technologies that are currently emerging

or as yet unproven Synthetic & Alternative fuels Targets for aircraft, engines and systems

Vision10 – Next generation Leading edge, technology validation Synthetic & Alternative fuels Technologies at demonstration stage

Vision5 – Near term Latest ‘on-the-shelf’ technologies applied

to existing architectures Near term upgrade and improvement

programmes

EEFAEANTLESILENCE®

Trent 1000Trent XWB

EFE

Rolls-Royce proprietary information6

Key technology programs

Rolls-Royce proprietary information7

5 year, NZD $240m programme Trent family donor hardware Six builds, first run 2008

Focused technology validation: HP turbine (materials, cooling, aero)

- operating at turbine entry temperatures over 200 ˚C hotter than today ’s engines

- delivering turbine efficiency >90% Lean-burn combustion

Programme identified as opportunity to run back-to-back tests with several alternative fuels on latest technology hardware

Vision Technology Research: Environmentally Friendly Engine (EFE)

Rolls-Royce proprietary information8

Rolls-Royce progress to future goals

Targets based on ACARE* cf 2000

Reduce CO2 by 50% per pax km: 20% from engines 20% from airframes 10% from Air Traffic management

Reduce NOx by 80%

Reduce perceived average noise levels by 50%

7 years into 20-year program and on-target to achieve goals

* Advisory Council for AeronauticsResearch in Europe

Rolls-Royce proprietary information9

Rolls-Royce progress to global green targets

Fuel burn (CO2) reduction NOx reduction Noise reduction

Trent XWB

0

-5

-10

-15

-20

2000 2005 2010 2015 2020

Trent 500

Trent 900

Trent 1000

+EFE technology

% fu

el s

avin

g (s

fc fu

el c

onsu

mpt

ion

norm

alis

ed fo

r eng

ine

pow

er)

Trent 895

Trent 1000 and Trent XWB

0

-20

-40

-60

-80

2000 2005 2010 2015 2020

Trent 500

Trent 900

ACARE 2020 target

% N

Ox

redu

ctio

n (n

orm

alis

ed to

CAE

P6 s

tand

ards

for e

ngin

e po

wer

)

Trent 895

ACARE 2020 target

Trent 1000 and Trent XWB (estimate)

Trent 500

Trent 900

+ turbo machinery intake and exhaust

improvement

ACARE 2020 target

Trent 895

2000 2005 2010 2015 2020

0

-2

-4

-6

-8

-10

dB

+ ‘Lean burn’technology

Rolls-Royce proprietary information10

Reducing fuel consumption

000188

Rolls-Royce proprietary information11

07/08/07 in Seattle…Trent 1000

000059

Rolls-Royce proprietary information12

Trent 1000 on the Boeing 787

Ribbed titanium fancase

Lightweight / strong

Hollow titanium fanLightweight / efficient

Low emissions combustorClean environment

Advanced turbine bladesMore efficient

HP spool contra-rotationLighter / more efficient

IP shaft power offtakeUnique to Trent engines

3D aero compressorsMore efficient

Advanced materials and

coatingsLightweight /

long life

Cycle and components designed for high Cycle and components designed for high efficiency, low noise and minimum efficiency, low noise and minimum environmental impactenvironmental impact

Rolls-Royce proprietary information13

Rolls-Royce proprietary information14

Environmentally friendly & economical

000049

Rolls-Royce proprietary information15

Evolutionary and revolutionary

Intelligent innovation

Trent experience + Vision technology

Rolls-Royce proprietary information16

Alternative fuels

Safety, energy density, low freezing point - critical for aviation fuel

Currently main drivers for alternative fuels are CO2 reduction and diversity/security of supply

Need to consider the total carbon life cycle and non-CO2 based emissions

Potential alternative fuels: Synthetic Fuel - aviation kerosene from Fisher-Tropsch

synthesis Bio-Fuels - Hydrogenated oils Bio-Fuels - kerosene plus bio-derived Fatty Acid Methyl

Esters Rolls-Royce is an active partner into alternative fuel research

with airlines, aircraft manufacturers and fuel companies

Rolls-Royce proprietary information17

Airbus, Rolls-Royce & Shell A380 demo

Flight evaluation of a 40% GTL kerosene fuel blended with conventional fuel Part of research programme to understand renewable fuels and potential future

applications. Aircraft - Airbus A380 MSN4 Engine - one Trent 900 engine powered using the derived fuel Test Date - 1 Feb 2008

Data gathered throughout the test process will contribute to understanding of the capabilities and limitations of renewable synthetic fuels

Rolls-Royce proprietary information18

Air New Zealand, Boeing & Rolls-Royce Renewable Fuels Study Program

Flight evaluation of a renewable bio fuel blended with kerosene fuel source Part of research programme to understand renewable fuels and potential future

applications. Aircraft - Air New Zealand Boeing 747-400 Engine - only one RB211-524 engine will use the derived fuel Timing - Second half of 2008 depending on availability of fuel

Data gathered throughout the test process will contribute to understanding of the capabilities and limitations of renewable fuels

Rolls-Royce proprietary information19

Summary

Rolls-Royce:

is committed to helping society address the problem of climate change

has a proven environmental track record with our products is committed to a strategy of continuous improvement invests in advanced technologies and programs focussed on

reducing environmental impact is at the forefront of understanding and addressing aviation

environmental issues is determined to be an active part of the solution to the

environmental challenge

Questions?